For more than a year now, the profit of blue-chip stock supersedes that of the broader market, however with the continued rise of COVID-19, blue chips stocks have suffered a downturn. After the official declaration of coronavirus as a worldwide pandemic, the blue-chip stock has continued to grapple with more fall from its high record.
On Wednesday, the Wall Street Journal recorded that the Dow Jones industrial average has tipped officially into a bear market. On the same day, the World Health Organization raised an alarm that countries are not doing enough to end the negative effect and spread of the virus. Currently, there are over 128,000 persons who have been affected by the virus. And as the virus continues to spread, more cities and businesses have been closed down. The stock that seems most affected by this is the blue-chip stocks.
The list of blue-chip most affected include:
Boeing BA stock was previously selling at $398, but currently down to $168, resulting to an overall drop down of 94.8 billion in market capital.
Amazon stock AMZN was previously selling for $2,185.95 but currently down to $1,693.
Apple stock AAPL entered bear market on February 28 with a drop to $256.37 as against the $327.85 it was selling for as at January. The stock is currently priced at $236.65
Microsoft stock MSFT was previously selling for $190.70 but has drop to $148.67.
- Facebook FB
Facebook stock FB was previously selling at $224.20 before the outbreak of coronavirus but has dropped to $154.34.
Disney stock DIS was previously selling for $300 before the coronavirus but has dropped to $171.
Alphabet Inc GOOG Class A was selling at $1,500.19 before the outbreak but it’s now selling below $1200.
· American Express
American Express stock AXP was selling above $135 dollars before the outbreak, it’s now selling below $80.00.
· Dow Inc
The Dow Inc stock DOW was selling around $ 50.00 before the outbreak, it also selling way below $30.00.
As the virus continues to spread, it create a big fall in the stock price of companies who have long been recording success in the stock market. Michael Farr, the president of investment firm Farr, Miller & Washington lamented that “Bear markets are ugly... they’re painful and they all last too long. Sadly, it seems that a new one is just getting started.”
“Markets will continue to tumble,” said Howard Yu, LEGO professor and director of the advanced management program at the Lausanne, Switzerland-based IMD business school in an email. “We can’t predict yet when they might bottom out, because we don’t know how long the global virus will spread.”
Added to this effect, on Wednesday, all the 11 stock market sectors under S&P turned negative with the financial, industrial, real estate and energy stocks faring worst than others, however, the health sector is the least affected by the negative effects. For Dow, all the 30 Dow components are greatly affected. The most affected among them are Boeing, losing about 18 percent of its value.
Disclaimer: Investingport staff owns Amazon, Disney, Apple, Dow Inc, Facebook and Microsoft.